DEVELOPING: Ice Edge Pulling Away From Hulsizer

((HT: Arizona Republic/Sanders))

With the vote by the City of Glendale coming tonight for paying the NHL another US$25M to keep the Coyotes from moving, an interesting bit of news comes from Sanders article this afternoon.

On the eve of the vote, Ice Edge Holdings- the former owner-wannabe-then-minority partner- has pulled their interest from the Hulsizer group saying that they just want to move on...

From Sanders:

"It was purely a decision based on the fact we have been involved with this for two years," ((lead Ice Edge head Anthony LeBlanc)) said. "We just didn't feel comfortable spending any additional time on it."

Ice Edge is now focusing on bringing minor league hockey back to Thunder Bay, Ontario as LeBlanc also plans a run for parliament in his home riding.

Matthew Hulsizer's response was that he could replace Ice Edge's investment and their loss won't affect his group.

More when we know more...

BREAKING NEWS: Reinsdorf Bid Dead, Coyotes Moving...???

((HT: Fan590 Toronto))

According to our friends at the Fan Radio Network, the Jerry Reinsdorf-led ((and supposedly agreed to)) bid with the City of Glendale may be in the toilet...

Considering how much money Reinsdorf was ((or, to be more accurate, wasn't)) laying out for the Coyotes, his bid is now dead in the desert...

KPNX-TV News12's Brahm Resnik, via his Twitter page, relays that one of the big issues for Glendale and the Reinsdorf bid was the dollars that were to be received from the proposed "facilities district plan."

In an article written by FOSG Scott Burnside for ESPN.com, the City of Glendale is now back dealing with Ice Edge Holdings- the group they told recently to perch and rotate in favor of Reinsdorf.

Ice Edge CEO Anthony LeBlanc confirmed to Burnside that the two sides had met in the past week and are trying to put a deal together.

This brings Canada back into the fray on a number of levels...

1) Remember Ice Edge's gambit on playing games in Saskatoon to try and improve their bottom line...? That's back in play...

2) The NHL is going to put some conditions on the Ice Edge bid- considering how shaky their financing was in the first place, including guarantees that the City of Glendale would back team financial losses for 2010-2011.

The timing, according to Burnside, varies on the source and the confirmation but conventional wisdom is leaning toward the end of the week for the NHL to be happy with Glendale.

3) If the deal falls through with Ice Edge, the NHL, and Glendale, Burnside reports that there is an agreement in place with David Thomson and/or Mark Chipman to bring the Coyotes back to Winnipeg...

Again...

4) That would put the AHL's Manitoba Moose in flux, but it would give the MTS Centre a good problem- unless they thought they could juggle two hockey tenants and 90 home dates. As a consolation prize, Ice Edge could end up with the Moose and move them to Thunder Bay, Ontario- the hometown of some of the Ice Edge guys...

Which takes us back to this, the day the Jets were put up for sale...
TSN's Michael Landsberg, when he had more hair, was on the anchor desk...
((HT: TSN/JHendrix70))

DEVELOPING STORY: Reinsdorf Bid Approved By Glendale Over Ice Edge

((HT: TSN))

The Glendale City Council has voted in favor of a proposed arena lease agreement submitted by a group headed by Jerry Reinsdorf ((pictured, thanks Jonathan Daniel/Getty Images)) that is seeking to buy the Phoenix Coyotes. The council rejected a plan submitted by Ice Edge Holdings, a group of Canadian and U.S. investors looking to do the same thing as the Reinsdorf group.

Reinsdorf's group, known as Glendale Hockey, must now reach an agreement with the NHL, which purchased the team in bankruptcy court last year.

Proposals from both groups would change the team name to either the Glendale Coyotes or Arizona Coyotes, with the NHL's approval, and would keep the team in Glendale.

According to KPNX-TV/12News Brahm Resnik, through his Twitter page, John Kaites was the representative for the Reinsdorf group for the vote while Anthony LeBlanc was present for Ice Edge. The Ice Edge vote, while apparently the choice of the fans attending, was voted down 5-1 while the Reinsdorf vote was a 6-0 in favor.

LeBlanc thanked the fans outside the meeting who supported their bid for the Coyotes. According to Resnik, it's the "end of the road" for IEH.

John Kaites claimed outside the meeting that everything should be finalized between Reinsdorf and the City of Glandale within the next 60-90 days. He also referred to the five-year "out clause" as an "assessment period."

The HQ reminds Kaites that it's an "out clause."

In the interim, here's Lauren Shehadi and Wes Goldstein previewing the Desert Dogs Round One playoff series with the Detroit Red Wings...

Gee, thanks for that one...
((HT: CBSSports))

BREAKING NEWS: Ice Edge, Reinsdorf Sign Memoranda Of Understanding

The head of Ice Edge Holdings says the company has signed a memorandum of understanding ((MOU)) on a new lease with the city of Glendale that is the next step in the possible purchase of the Phoenix Coyotes.

The Glendale city council is scheduled to vote on the proposal Tuesday. Ice Edge Holdings Chief Executive Officer Anthony LeBlanc says there still is a lot of work to be done to get the lease agreement.

There was no immediate word whether the group headed by Jerry Reinsdorf has followed through on signing an MOU.

PM UPDATE: Mike Sunnucks with the Phoenix Business Journal reports Reinsdorf has signed an MOU as well. But here's where the fun starts...

1) Reinsdorf wants a name change to either the "Arizona" or "Glendale" Coyotes
2) He wants a tax district that will be able to collect revenue and issue bonds against the district itself. The district would then pay the NHL over US$20M in three seasons and set up a reserve fund to combat possible losses.
3) The five-year out clause
4) Taking over arena operations, but having the City of Glendale still pay the bond debt
5) Charging for parking

Ice Edge wants a tax district, to charge for parking, ticket surcharges for events, a possible name change, and the ability to buy the arena if it ever goes up for sale.

But the key Sunnucks paragraph is this one:

Daryl Jones, chief operating officer of Ice Edge, said his group hopes to turn the memorandum of understanding with the city into a formal lease deal that would enable his group to get financing to buy the team.

Whoops...

PM UPDATE: Rebekah Sanders of the Arizona Republic has her wrap of the day out.
The Glendale city council is voting on the two proposals Tuesday. Ice Edge's deal with the city doesn't have a clause in it that would call for a move of the franchise if the venture is still unprofitable.

If the two ownership groups are approved, then they would go to the NHL for review.

Reinsdorf wants to purchase the team for US$65M. Ice Edge wants to purchase the franchise for somewhere in the neighborhood of US$140-150M.

The CBC's Tom Harrington brings up an issue on his Twitter page: "NHL owners wouldn't let Bettman sell for less than league paid so not sure how Reinsdorf's 65m can satisfy that."

Interesting... but the HQ still think this whole process is rigged...

DEVELOPING STORY: Ice Edge Future With Coyotes Uncertain At Best

From Tom Harrington of the CBC and his Twitter account...

KPNX-News12's Brahm Resnik is saying that Daryl Jones and Ice Edge Holdings may back out of their bidding of the Phoenix Coyotes by Friday because they're tired of all the games and shenanigans going on with the City of Glendale...

From Resnik's Twitter account:
"If the city keeps playing games, they will have one proposal on Friday," Ice Edge Chief Operating Officer Daryl Jones tells Resnik.

"Seems (Glendale) thinks they are better served by a short-term lease from Kaites and Reinsdorf," Jones says.

The City of Glendale set a Friday deadline for signing a "Memorandum Of Understanding." Jones called that move "major steps backwards."

OSG Sources and soundingboards in this entire process are split in their interpretation of the Jones quotes- the US sources are leaning toward Jerry Reinsdorf and the Canadian sources are leaning toward a franchise return to Winnipeg.
One Arizona-based soundingboard says that they had heard for a few weeks now that Ice Edge was not going to work out, despite COO Anthony LeBlanc's assertion that financing for IEH was okay.

Harrington adds that it looks Jerry Reinsdorf would then swoop in for US$40M less than he offered during the court proceedings last summer with a 5-year out clause. Touching base with LeBlanc late Wednesday night, Harrington relays that reports of Ice Edge's death are greatly exaggerated.

IEH has no such out clause like the one Reinsdorf would want in his deal, but it does raise the issue of why Jones and LeBlanc would talk on both sides of the same story. Apparently, someone even walked up to LeBlanc at the Predators-Coyotes game Wednesday evening and thanked him for his efforts with the 'Dogs.

Harrington also says that LeBlanc seemed "surprised" by what Jones said and chalked it up to being frustrated with the negotiation process.

More when we know more...

Round 3: PHX To WPG- Glendale Approves Lease Agreements

Thanks to Darren Pang for the heads-up on this...

Two lease proposals for the Phoenix Coyotes given to the Glendale City Council earlier this week have been approved- both from Ice Edge and Jerry Reinsdorf.

Ice Edge CEO Anthony LeBlanc also says they have hired former Arizona attorney general Grant Woods to finalize their lease agreement with the city of Glendale.

In an e-mail to The AP, LeBlanc quoted Mark Twain in saying, "Reports of my death are greatly exaggerated"- alluding to the notion that Ice Edge's funding is shaky at best...

Sources close to the Coyotes' situation believe Glendale may run out of time before it can decide on a lease that works for the city and franchise since the NHL has said they're not renewing their lease agreement after June 2010.

Here's FOSG James Cybulski talking about the whole "Return of the Coyotes to The Peg" idea that The Bettman floated last summer...
((HT: TSN))

Ice Edge Signs Letter Of Intent For Coyotes

NOt that this is a real surprise...

But the Daryl Jones-led group, Ice Edge Holdings, has decided to put their money where their mouth is and place a bid for teh Phoenix Coyotes.

Keeping them in Glendale...

Uh, yeah...

Remember, Ice Edge initially wanted to have the Dogs host some games in Saskatoon, Saskatchewan as part of their hook- and, presumably, money-making ideas for the franchose... which is hemorrhaging Yankee Dollars right now. Projected losses have them at US$50-million this year alone.

Neat...

Ice Edge chief executive officer Anthony LeBlanc said "Ice Edge has committed to keep the Coyotes in Glendale for the remaining term of the original lease."

There are 26 years left on the Coyotes' lease to play at Jobing.com Arena, which was built for the team by the city of Glendale.

LeBlanc says there would be no "out clause" that would allow Ice Edge to break the lease.

"We believe in this team and the demographics of the Valley," he said, a reference to the sprawling Phoenix metropolitan area.

Those of us at OSG HQ think LeBlanc has lost his cotton-picking mind...

Here's what Ice Edge is getting their mitts into... the highlights form their last outing against the LA Kings...
((HT: NHL Video))

Ice Edge Taking Aim At Coyotes Again

((HT: GlobeSports/Waldie))
Surprising no one in particular, Ice Edge Holdings has decided to go after the Phoenix Coyotes again and not move them from the desert- a move, those of us at OSG HQ are sure, the National Hockey League likes a great deal...

“Our plan has always been to buy it and operate in Phoenix,” he said.

Ice Edge is made up of eight Canadian and American businessmen, including former Research In Motion Ltd. executive Anthony LeBlanc and John Breslow, a current co-owner of the Coyotes.

Jones also told Waldie that Ice Edge has lined up financing for the bid. “We feel pretty confident with our financing,” he said.

And they still want to do the "couple of home games in Saskatoon idea" that hasn't been approved by the NHL yet, either...

Jones said the group is confident it can make NHL hockey work in Phoenix.

“We’re sticking in this because we believe there is a fan base there that exists, that wants to support the team and wants to go to games,” he said.

Those of us at OSG HQ would like to say good luck with that one...

And About Ice Edge... They're Not Done, Either...

((HT: GlobeSports/Waldie))

“I can say that from our standpoint, as Ice Edge Holdings, we certainly have been bitten by the bug of the excitement of owning an [NHL] franchise,” said Anthony LeBlanc, a former Research In Motion Ltd. executive who co-founded Ice Edge. “We're all extreme hockey fans. We certainly have the desire to be involved in some manner with a professional sports franchise.”

LeBlanc said Ice Edge, which is made up of eight Canadian and U.S. businessmen, has been approached by investment bankers working for a handful of NHL teams and one English Premier League soccer team. He declined to identify the clubs, but a source said one suitor was the Tampa Bay Lightning.

“I wouldn't say that we're actively looking at other NHL franchises [and] I don't know if we would,” LeBlanc said. “I am sure based on what we've gone through we would certainly explore it if something came up.”

For now, Ice Edge plans to focus on buying an AHL franchise and relocating it to Thunder Bay, where LeBlanc grew up. The group is also working with Thunder Bay officials on a plan to build a 7,000-seat arena for about $100-million.

During yesterday's court hearing, Shep Goldfein, a lawyer representing the NHL, said Coyotes coach Wayne Gretzky was involved with Ice Edge and planned to cut his annual salary to $2-million from $8-million if the group bought the Coyotes. Goldfein also suggested the co-owners of the Toronto Argonauts, Howard Sokolowski and David Cynamon, were involved with Ice Edge.

LeBlanc declined to comment. Ice Edge has said before that it planned to work with Gretzky, and sources said Sokolowski and Cynamon were approached to join Ice Edge but did not.

LeBlanc said he knows many observers never took Ice Edge seriously, nor its plans to play some Coyotes games in Saskatoon. “People have the right to their own opinions. But we think that we showed that we're a real group and if we had a little more time we would have been at the auction.”

Ice Edge Weighs In As Reinsdorf Checks Out

((HT: TSN))

The NHL announced its bid filing a few hours before word came that the investors' group, known as Ice Edge Holdings, had met Tuesday's court-imposed deadline ((the Coyotes are pictured, thanks Rick Scuteri/Reuters)).

Ice Edge chairman Keith McCullough said in a news release that the plan was to "revitalize NHL hockey in Arizona and the southwestern United States."

"In the last eight weeks we have worked with the NHL, the city of Glendale and members of the Coyotes organization to develop a solid plan for the successful operation of the Coyotes in Phoenix," Ice Edge chief operating officer Daryl Jones said.

Ice Edge officials repeatedly mentioned working with Wayne Gretzky, the former hockey great who is the Coyotes coach and owns a small share of the team.

"The Phoenix Coyotes organization presents a number of great hockey and business opportunities," Ice Edge CEO Anthony LeBlanc said. "We will build on the team's brand, the Wayne Gretzky brand and a partnership with the city of Glendale to ensure that Arizona continues to enjoy the NHL for many years to come."

Ice Edge was a late arrival in the Coyotes case, but it said it filed a detailed bid that included "renegotiation of key debts and contracts, a revamped sales and marketing strategy and a more effective utilization and partnership with Wayne Gretzky."

Ice Edge, which earlier had indicated it would have the team play a few games in smaller Canadian cities, also said it had reached an agreement in principal on a repayment plan with the Coyotes' largest secured creditor, SOF Investments.

That last part is key... Ice Edge is now in line with SOF as well.

Even if Ice Edge, Reinsdorf, and the NHL weren't neccessarily going to pay Moyes a nickel, they're all on the same page. And that's key for the league to continue in the bid-blocking scheme they've hatched against Jim Balsillie.

Even if Ice Edge doesn't get the bid through bankruptcy proceedings, they could still be a player later for the Coyotes and/or other franchises...

Wayne Gretzky is still very quiet on all this- which means he'll get his from someone- the new owner, the league, or both.

Ice Edge's Bid For Coyotes Includes Canadian Games

((HT: GlobeSports/Waldie))

A group intending to bid $150-million (all currency U.S.) for the Phoenix Coyotes ((pictured, thanks Christian Petersen/Getty)) wants to bring five of the franchise's regular-season games to Saskatoon or Halifax.

The group, officially known as Ice Edge Holdings, has been in discussions with officials from Saskatoon and Halifax about playing five Coyotes' regular seasons games in either community. Ice Edge is leaning toward Saskatoon, although no firm deal is in place. If the National Hockey League approves the plan, the Coyotes would play “home games” in Saskatoon's 11,300- seat Credit Union Centre against the Montreal Canadiens, Calgary Flames, Edmonton Oilers, New Jersey Devils and Vancouver Canucks.

If the Coyotes make the playoffs, Ice Edge would hold some of those games in Saskatoon as well. It also plans to move the Coyotes' farm team, the San Antonio Rampage, from Texas to Thunder Bay.

“Canada is obviously a tremendous hockey market, yet there are currently 6,000 kilometres of Canadian soil that have no exposure to the NHL in their home market,” said Daryl Jones, an Ice Edge partner. “Our plan from the outset was to work with a Canadian city that doesn't have NHL territorial rights issues, and also one that wouldn't be considered a threat to the fans in Phoenix.”

“It's a great opportunity to bring regular season NHL hockey to a Canadian city that otherwise would never have the opportunity. It is a great way to ensure the team stays in Phoenix for the long run, but partners with a Canadian city in the process.”

Ice Edge officials will present the idea – dubbed the “grassroots Canadian hockey strategy” – to the NHL's executive board Wednesday in Chicago. The group has no plans to relocate the Coyotes and sees the Canadian games as a way of generating additional revenue so the club can stay in Phoenix.

“Ultimately this is a plan to revitalize NHL hockey in Arizona and the southwestern United States,” Mr. Jones said.

NHL deputy commissioner Bill Daly said the league is aware of the plan but it would “have to be considered and approved by the NHL board of governors.”

Ice Edge raised the idea with several other Canadian cities, including Winnipeg where the Coyotes once played as the Jets, but the discussions have gone the farthest with Saskatoon and Halifax. The group did not approach Hamilton or Toronto, both targeted by other groups interested in NHL franchises.

The Coyotes filed for Chapter 11 protection in May and an Arizona bankruptcy court will hold an auction for the club on Aug. 5. The auction is only for bidders interested in keeping the Coyotes in Phoenix.

If the court determines the bids are too low, another auction for those who want to relocate the team will be held Sept. 10.

Jim Balsillie, co-chief executive of Research In Motion, has offered $212.5-million to move the Coyotes to Hamilton. On Sunday, his spokesman Bill Walker said Balsillie's offer “is not just miles but time zones ahead” of other competing bids and “offers the best outcome for the franchise.”

So far only Jerry Reinsdorf, owner of the Chicago Bulls and White Sox, has submitted a formal bid for the Aug. 5 auction. His offer, worth up to $148-million, is conditional on a new arena lease and concessions from creditors.

Ice Edge has submitted only a letter of intent, but it hopes the bankruptcy court judge will take the proposal seriously and give the group time to finalize its offer for the August auction. The group has three main major financial backers, including Anthony LeBlanc, 39, a former RIM executive who lives in Ottawa.

LeBlanc was working on a deal to bring an Ontario Hockey League club to his hometown of Thunder Bay, but he decided to pursue the Coyotes after the club filed for court protection. He has been joined by Jones and Keith McCullough, who is also from Thunder Bay and runs an investment firm in New Haven, Conn., called Research Edge.

Jones, who hails from Alberta, also works at Research Edge and played hockey at Yale University with McCullough. Mr. LeBlanc is an Ottawa Senators' season ticket holder and he was introduced to NHL executives by Cyril Leeder, the Senators' chief operating officer.

The games in Canada are a key component of Ice Edge's proposal and it is unlikely the group will be able to pursue a bid if the NHL turns down the idea. Other features of Ice Edge's plan include offering Wayne Gretzky, the Coyotes' coach and co-owner, a long-term coaching contract and a major ownership stake.

Ice Edge is also considering opening a Gretzky's restaurant in the Jobing.com arena. Gretzky currently owns about one per cent of the Coyotes and he receives a share of profits and revenue from the club, according to documents filed in court.

Ice Edge officials have met with Mr. Gretzky to go over its plans. While no agreement has been reached, Gretzky is believed to be receptive to the ideas, including playing games in Saskatoon.

Reinsdorf's offer does not appear to include any role for Gretzky. According to documents filed in court Sunday, Gretzky's employment contract is not included in Reinsdorf's proposed purchase.

Another Coyotes' co-owner, Phoenix businessman John Breslow, has joined Ice Edge as an investor. Breslow runs the Coyotes charity and the NHL had indicated in a court filing that he was a potential bidder for the club. However, he recently agreed to join Ice Edge and continue working on the charity.

There is no guarantee Ice Edge's proposal will succeed even if the NHL approves the games in Canada. The group's plan hinges on a new lease agreement with the City of Glendale, the Phoenix suburb that funded construction of the Jobing.com arena and is a major Coyotes' creditor.

Ice Edge has had discussions with the city and it is hopeful a deal can be reached. The group is also still lining up financial backers and it recently held a meeting at the Magna Golf Club near Toronto for a dozen potential investors.

Ice Edge is convinced it can sort out the Coyotes' finances and break even within a couple of years. The club has never made money since moving from Winnipeg in 1996, according to court filings, and it lost $67.1-million last season.

Ice Edge plans to introduce a new ticketing system, cut costs, charge for parking and improve the Coyotes' marketing.

“In the last three weeks we have worked with the NHL, the City of Glendale and members of the Coyotes' organization and we are confident that the organization can thrive in Arizona,” Jones said.

Breslow Named As Investor In Ice Edge's Coyotes Bid

((HT: Arizona Republic/Watters))

A former employee of Jim Balsillie’s company is part of an investment group that intends to bid on the Coyotes in U.S. Bankruptcy Court.

A coincidence is how representatives for Ice Edge Holdings, LLC described Anthony LeBlanc’s connection to the man who attempted to move the team to Canada.

Meanwhile, the group, which on Friday filed a letter of intent to bid up to $150 million for the Coyotes, also named John Breslow among its investors. The Las Vegas resident is a minority owner in the franchise and has served as chairman of Coyotes Charities.

Anthony LeBlanc would act as chief executive of the Coyotes if the group’s bid wins. The Ottawa, Canada resident is a former vice president of global sales for Research in Motion, the maker of Blackberry wireless.

Balsillie, the co-CEO of Research in Motion, rankled Phoenix hockey fans when he offered $212.5 million to purchase the bankrupt Coyotes and relocate the team to Hamilton, Ontario.

A bankruptcy judge set Balsillie's offer aside until it is determined if a buyer willing to keep the team in Glendale can be found. Ice Edge Holdings is among two investment groups to come forward.

Daryl Jones, who has been speaking on behalf of the group, previously told The Arizona Republic he never met Balsillie, but declined to name all of the investors in his group.

On Saturday, Jones confirmed LeBlanc as a partner and his connection to Balsillie after a Canadian news report surfaced. Jones said he wanted to downplay the connection because it in no way influenced his group's interest in the team.

"There's a reason we didn't want this to get out. We just don't think it's relevant to the story," Jones said.

The group’s known investors now include: LeBlanc, Breslow, Jones and Keith McCullough, who works with Jones at a Connecticut-based investment research firm, Research Edge. Coyotes coach and minority owner Wayne Gretzky and others also may become partners, Jones said.

Jones called LeBlanc’s nine-year employment at Research in Motion a "non-starter" and a "strange coincidence."

LeBlanc left the company less than a year ago, he said.

Balsillie's attorney Richard Rodier called it "entirely coincidental," as well. He said Balsillie's group has not communicated with LeBlanc on his efforts to acquire the team.

Jones said Ice Edge Holding's intent is "100 percent" to keep the team in Arizona for the long haul. "We would be having absolutely no plans to leave," Jones said.

He also discounted speculation by a Canadian radio show that the Coyotes could play some of their games in Hamilton. "This is a Phoenix franchise. This is not a Hamilton franchise," Jones said. An auction of the team is Aug. 5, but the deadline to submit bids was Friday.

Jones' group missed that deadline, saying they only began exploring the team's finances three weeks ago. The group did file its intent to bid, and Jones said a detailed offer should be in place by the auction.

The only completed bid for up to $148 million came from Glendale Hockey, LLC, which includes sports mogul Jerry Reinsdorf, Valley attorney John Kaites and former sports executive Tony Tavares.

((Jobing.com arena is pictured, thanks Carlos Chavez/Arizona Republic))

Now We Know Who The "Other Bidder" Is For The Coyotes...

((HT: GlobeSports/Waldie))

When Research In Motion co-chief executive Jim Balsillie offered to buy the Phoenix Coyotes and move the NHL team to Hamilton, Anthony LeBlanc was so excited he sent his old boss a letter of congratulations.

But soon Mr. LeBlanc, a former RIM executive, started looking more closely at the Coyotes together with a couple of hockey-loving friends from the investment world. Yesterday, Mr. LeBlanc and his group submitted a letter of intent, offering to buy the Coyotes for $150-million (U.S.) and keep the team in Phoenix.

“Southern Ontario can support another [NHL] team – there's absolutely no question, and I think Jim would be a tremendous owner,” Mr. LeBlanc said from his home in Ottawa. “It's just we don't think that Phoenix is the right team because we think there's a real savvy business case that can be had in Phoenix.”

Mr. LeBlanc said he loved his years at RIM and considers Mr. Balsillie a mentor and a good friend. But the Coyotes purchase “is one of those rare opportunities that come up that we're pretty excited about.”

His main partners are Keith McCullough and Daryl Jones, a couple of Canadians who played hockey together at Yale University and now run an investment firm in New Haven, Conn., called Research Edge. “We're all good Canadian boys. The idea of owning an NHL franchise is a dream.”

Mr. LeBlanc, 39, left RIM last year after nine years with the company, where he was vice-president of global sales. At first, he pursued a few investment ideas and launched another hockey venture – bringing an Ontario Hockey League team to his home town of Thunder Bay. Mr. McCullough, who is also from Thunder Bay, heard about the OHL idea and offered to help, along with Mr. Jones.

They were on track with those plans until May 5, when Coyotes' majority owner Jerry Moyes put the club into bankruptcy protection and announced a $212.5-million deal with Mr. Balsillie. Mr. LeBlanc wished Mr. Balsillie well and even joined his “Make it Seven” campaign.

But as Mr. Balsillie's purchase got bogged down in Arizona bankruptcy court, Mr. LeBlanc and the others began thinking about the Coyotes. Their break came in late June when Judge Redfield T. Baum ordered an auction on Aug. 5 for bidders interested in keeping the club in Phoenix. The judge said if that auction didn't produce a decent offer, another one will be held Sept. 10 for bidders, such as Mr. Balsillie, who want to relocate the club.

Mr. LeBlanc and the others dropped the OHL plans and sent a team of analysts to Phoenix to review the Coyotes' books. They also met with Wayne Gretzky, the Coyotes' coach and a co-owner, as well as NHL commissioner Gary Bettman and officials from the City of Glendale, the Phoenix suburb that financed the arena where the Coyotes play. They even came up with a name for their enterprise, Ice Edge Holdings, and launched a website.

The group won the blessing of Mr. Bettman, and is hopeful of reaching a deal with the city on a new arena lease. It has also asked Mr. Gretzky to remain as coach and a part owner.

“They have the greatest asset that you could ever want in a hockey owner in Wayne Gretzky and he is not being utilized and he knows it,” Mr. LeBlanc said. “Wayne really, really wants to keep this team in Phoenix.”

The deadline for bids was yesterday and so far the group's only competition is from Jerry Reinsdorf, owner of the Chicago Bulls and White Sox. He has offered $148-million for the Coyotes and also wants a new arena lease.

There's no guarantee Mr. LeBlanc and his group will be able to finalize their bid or win the auction. They have only offered a letter of intent, not an official offer, but they hope the judge will see that they are serious. Sources familiar with the auction are skeptical about their plans and their ability to get a bid together for the Aug. 5 auction.

Even if they win, running the Coyotes won't be easy. The club's attendance has been dismal and according to court filings, it hasn't made money since moving from Winnipeg in 1996. Last season, the Coyotes lost $67.1-million.

Mr. LeBlanc believes the club can be successful. He cites small changes such as charging for parking, putting a restaurant in the arena and changing marketing tactics as first steps. “We honestly feel that with low-hanging fruit we can get this thing to within a grasp of being a zero-deficit operation within a year to two years maximum,” he said.

The city's economy is showing signs of life, he added, and Canadians are snapping up foreclosed properties by the hundreds.

Mr. LeBlanc and the others haven't forgotten Thunder Bay. If they win the auction, the group plans to move the Coyotes' farm team, the San Antonio Rampage, from Texas to Thunder Bay and help build a new arena.

For now though, Mr. LeBlanc and the others are finalizing their offer and lining up more investors.

“We truly want to make this thing successful and we're excited about the opportunity. I think our enthusiasm can be a little bit infectious at times.”